Happy Monday! In this new-week, new-world we are highlighting the stock market sentiment which took one of the worst declines investors have seen since August. This should not alarm any confident investors who are able to find value in highly volatile market swings. The investment guru Warren Buffet released his equity holdings as of September 30, 2015 and he does not appear to be flustered by this volatility. Unfortunate events such as the terrorist attacks in Paris can actually be buying opportunities for contrarians like ourselves.
Why does this matter?
The market still appears to be playing the waiting game on an official Fed rate hike decision. For this reason alone investors have given the market unstable swings, both up and down, leaving investors wondering how the markets will end the year.
For your average investor the news of volatility most likely does not do well for their personal portfolio and can send investors rushing to liquidate their portfolio to have a stronger cash position. This may seem safe and the best bet if you manage your own investment account do not monitor your positions frequently enough. For investors who have a portfolio manager handling their investments, it is important to receive feedback from your advisor on how they are managing the rigorous market volatility.
What does this mean for the world?
Buffet’s equity announcement still holds four companies as a large portion of his portfolio which are American Express (AXP), Wells Fargo (WFC), International Business Machines (IBM) and Coca-Cola (KO). Although the overall market is down he has committed to adding to his position in (IBM), showing his confidence in these companies is what makes him able to accumulate more wealth.
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